Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co. Fair value of plan assets, Jan. 1, 2020 $9,600 PBO Jan. 1, 2020, not including any items below 12,000 PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period) 6,000 Gain from change in actuarial assumptions, computed as of Jan. 1, 2020 1,800 Actual return on plan assets, 2020 1,200 Contributions to plan assets in 2020 2,400 Benefits paid to retirees in 2020 3,000 Service cost for 2020 5,400 Discount rate 8% Expected rate of return on plan assets 10% Required a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method. Pension expense, 2020 b. Compute PBO at December 31, 2020. PBO, Dec. 31, 2020 c. Compute fair value of plan assets at December 31, 2020. Fair value of plan assets, Dec. 31, 2020
Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co. Fair value of plan assets, Jan. 1, 2020 $9,600 PBO Jan. 1, 2020, not including any items below 12,000 PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period) 6,000 Gain from change in actuarial assumptions, computed as of Jan. 1, 2020 1,800 Actual return on plan assets, 2020 1,200 Contributions to plan assets in 2020 2,400 Benefits paid to retirees in 2020 3,000 Service cost for 2020 5,400 Discount rate 8% Expected rate of return on plan assets 10% Required a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method. Pension expense, 2020 b. Compute PBO at December 31, 2020. PBO, Dec. 31, 2020 c. Compute fair value of plan assets at December 31, 2020. Fair value of plan assets, Dec. 31, 2020
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances
The following data relate to a defined benefit pension plan for Hollistir Co.
Fair value of plan assets, Jan. 1, 2020 | $9,600 |
PBO Jan. 1, 2020, not including any items below | 12,000 |
PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period) | 6,000 |
Gain from change in actuarial assumptions, computed as of Jan. 1, 2020 | 1,800 |
Actual return on plan assets, 2020 | 1,200 |
Contributions to plan assets in 2020 | 2,400 |
Benefits paid to retirees in 2020 | 3,000 |
Service cost for 2020 | 5,400 |
Discount rate | 8% |
Expected |
10% |
Required
a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method.
Pension expense, 2020 |
b. Compute PBO at December 31, 2020.
PBO, Dec. 31, 2020 |
c. Compute fair value of plan assets at December 31, 2020.
Fair value of plan assets, Dec. 31, 2020 |
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